Bioplastics Market - Overall Industry Analysis 2025

Bioplastics are obtained by converting the sugar present in plants into plastic. The sugar in turn is obtained from corn, cane, sugar beets, wheat, or potatoes. This makes bioplastics sustainable and better for the environment as compared to conventional plastics. In 2016, the bioplastics market stood at 6,333 kilotons, and is expected to grow at a CAGR of 23.1% in terms of volume from 2017 to 2025 to reach 39,746 kilotons by 2025. Bioplastics are extensively used in the production of rigid packaging. However, the level of technical complexity involved in bioplastics packaging is high. The adoption of bioplastics in rigid packaging was the highest in 2016, and is expected to grow at the same pace throughout 2025. For instance, the commercialization of co-extruded double or multiple layer film products has gained momentum in the recent years. It is also used in the development of durable products such as those in consumer electronics such as laptop, mobile, and phone casings; in sporting shoes, ski boots; and interior trim and spare wheel covers.

The production and use of bioplastics is considered as a sustainable solution due to low emission of greenhouse gasses. Factors such as favorable government policies, increase in consumer awareness about growth in environmental concerns, and eco-friendly properties drive the growth of the bioplastic market. However, high production cost and comparatively lower performance standards than synthetic plastics restrain the market growth to a certain extent.

In 2016, Europe accounted for the largest market share in the global bioplastic market, and is anticipated to dominate the market during the forecast period. Regional industries have adopted bioplastics over conventional plastics with an objective of transforming Europe into a proper waste management region. Germany, Italy, and the UK are the major countries involved in the development and production of bioplastic in Europe. European Associations in association with the government implement environmental policies to promote sustainability and bio-degradability. This trend is expected to be a significant driving factor for the growth of the bioplastics market in Europe. Asia-Pacific is anticipated to grow at the significant CAGR from 2017 to 2025. The large population base of the region is expected to provide growth opportunities for the bioplastics market in the Asia-Pacific region.

The market is segmented based on type, application, and region. Based on type, market is classified into biodegradable and non-biodegradable bioplastics. Furthermore, biodegradable plastics are segmented into polylactic acid (PLA), polyhydroxyalkanoates (PHA), polyesters, starch blends, and others, which includes cellulose acetate and others. Non-biodegradable plastics are segmented into bio-PA (polyamide), bio-PE (polyethylene), bio-PET (polythene terephthalate), and others (Bio-PTT, Bio-PUR, and epoxies). Based on application, the market is divided into rigid packaging, flexible packaging, textile, agriculture & horticulture, consumer goods, automotive, electronics, building & construction, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Market Dynamics

Drivers

Bioplastics have the potential to reduce carbon dioxide emission by 30-70%, as compared to conventional synthetic plastic. Thus, environmentally friendly properties of bioplastic are expected to drive the market growth.

Increase in consumer awareness about using sustainable products coupled with rapid environmental concerns, such as global warming, fuel the adoption of bio-based and biodegradable plastic materials in the recent years.

Governments of several countries across the world focus on adopting favorable regulations and policies to promote sustainability and biodegradability of bioplastics, which in turn is expected to drive the market growth.

The use of renewable sources for manufacturing bioplastics is one of the major advantages of bioplastics.

Restraints

High cost of end user product is one of the biggest issues faced by the global bioplastics market.

Bioplastic is not suitable for various applications due to poor mechanical, thermal and water absorption properties.